Openview activations crush DStv subscriptions

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Openview activations crush DStv subscriptions
  • DStv Subscribers dropped. 

The South African pay-TV landscape has witnessed significant changes over the past six years, with eMedia’s Openview service achieving remarkable growth in decoder activations compared to MultiChoice’s DStv. This article delves into the dynamics between these two major broadcasters, exploring how Openview’s activations have surged and what this means for the future of pay-TV in South Africa.

Openview vs. DStv: A Six-Year Comparison

The competition between Openview and DStv has intensified, with Openview recording 2.12 million more activations than DStv subscriptions over the last six years. This section provides a detailed comparison of their growth trajectories and market strategies.

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Decoder Activations and Subscriber Additions

  • Openview Activations:
    • Activated nearly 2.81 million set-top boxes from 2018 to 2024.
    • Notable yearly activations include 368,599 in 2021, 413,011 in 2022, and over 500,000 in 2023.
    • Despite a decline to 377,916 activations in the last financial year, Openview maintained a strong performance.
  • DStv Subscriptions:
    • Added 686,000 subscribers in the same period.
    • Higher net subscriber additions in 2019 and 2020.
    • From 2021 onwards, Openview consistently outperformed DStv in net additions.

Market Dynamics and Strategic Differences

Understanding the distinct operating models of Openview and DStv is crucial to interpreting their market positions.

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Revenue Models

  • DStv:
    • Combines product purchases, subscriptions, and advertising revenue.
    • Every subscriber directly contributes to MultiChoice’s revenue stream.
  • Openview:
    • Operates a free-to-view model after the initial decoder purchase.
    • Relies heavily on advertising revenue, benefiting from a broad audience reach.

Financial Performance and Advertising Revenue

  • eMedia (Openview):
    • Achieved a record R2.165 billion in television advertising revenue in 2024.
    • Captured a 33.5% prime-time audience market share.
  • MultiChoice (DStv):
    • Experienced a decline in advertising revenue from R3.27 billion to R3.17 billion over the same period.

Viewership and Programming Quality

Despite DStv being perceived as a higher-quality product, eMedia’s channels consistently attract more viewers.

  • E-tv’s Programming Success:
    • Original programming, including soaps and dramas, ranks among the most-watched in South Africa.
    • May 2024 statistics showed E-tv’s top five programmes each drew over 3.2 million viewers.
  • DStv’s Viewership:
    • The most-watched programme on DStv attracted 1.34 million viewers, significantly lower than E-tv’s top ratings.

Strategic Initiatives and Future Plans

Both broadcasters are pursuing new strategies to enhance their offerings and capture market share.

Openview’s Upcoming Features:

  • Plans to launch additional channels in the next financial year.
  • Development of a new smart decoder with onboard storage and Wi-Fi connectivity.

DStv’s Adaptation Strategies:

  • Focusing on premium content and exclusive programming to retain and attract subscribers.
  • Enhancing digital and on-demand services to meet changing consumer preferences.

FAQs

What has led to Openview’s growth in activations? Openview’s growth is primarily due to its free-to-view model, affordable initial investment, and the increasing popularity of eMedia’s programming.

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How does Openview generate revenue without subscriptions? Openview relies heavily on advertising revenue, benefiting from its large audience base and high viewership of popular channels.

What are the key differences between DStv and Openview? DStv offers a subscription-based model with a wide range of premium content, while Openview provides free access after the initial purchase, focusing on advertising revenue.

Which service offers better viewership numbers? E-tv’s programming on Openview often achieves higher viewership numbers compared to DStv’s top content, indicating a strong preference for eMedia’s shows.

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Are there plans for new channels on Openview? Yes, Openview plans to launch new channels in the next financial year and is developing a smart decoder to enhance user experience.

How has DStv responded to Openview’s growth? DStv has been enhancing its digital offerings and focusing on exclusive content to maintain its subscriber base and compete with Openview’s growing popularity.

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DStv subscribers have dropped in Nigeria.

Following the hike in DStv Nigeria packages, many Nigerians have switched to SLtv and Startimes. Data obtained by our correspondent shows that DStv subscribers have dropped by 10% following the increase in their various packages.

The competition between Openview and DStv highlights the evolving dynamics of the South African pay-TV market. Openview’s impressive activation growth and strong viewership numbers demonstrate its significant impact, while DStv continues to adapt its strategies to retain its position. As both broadcasters innovate and expand their offerings, the South African audience stands to benefit from diverse and high-quality television experiences.

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